HENDERSON COUNTY PUBLIC SCHOOLS INITIAL BUDGET Budget Resolution - All Funds (By Purpose/Function) A

Transcription

1 INITIAL BUDGET Budget Resolution - All Funds (By Purpose/Function) A Initial Budget - All Funds B Revenues-Local Current Expense Fund/Other Restricted Funds C Expenditures-Local Current Expense Fund/Other Restricted Funds D State Public School Fund E Federal Grants Fund F Enterprise Fund G Capital Outlay Fund H

2 BUDGET RESOLUTION for the Fiscal Year Ending June 30, 2011 A Page 1 of 26 BE IT RESOLVED by the Board of Education of the Henderson County Public Schools: Section 1 - The following amounts are hereby appropriated for the operation of the Henderson County Public Schools in the State Public School Fund for the fiscal year beginning July 1, 2010 and ending June 30, 2011: Instructional Services: Regular Instructional Services $ 43,908, Special Populations Services 9,243, Alternative Programs and Services 2,094, School Leadership Services 2,722, School-Based Support Services 2,740, Total Instructional Services $ 60,709, System-Wide Support Services: Support and Development Services $ 270, Special Population Support and Development Services 149, Alternative Programs and Services Support and Development Services 10, Technology Support Services 178, Operational Support Services 5,250, Financial and Human Resource Services 845, Accountability Services 72, System-Wide Pupil Support Services 51, Policy, Leadership and Public Relations Services 646, Total System-Wide Support Services $ 7,476, Ancillary Services: Nutrition Services $ 110, Total Ancillary Services $ 110, Total State Public School Fund Appropriation $ 68,297, Section 2 - The following revenues are estimated to be available to the State Public School Fund for the fiscal year beginning July 1, 2010 and ending June 30, 2011: State Sources $ 68,297, Total State Public School Fund Revenues $ 68,297, Section 3 - The following amounts are hereby appropriated for the operation of the Henderson County Public Schools in the Local Current Expense Fund for the fiscal year beginning July 1, 2010 and ending June 30, 2011:

3 BUDGET RESOLUTION for the Fiscal Year Ending June 30, 2011 A Page 2 of 26 Instructional Services: Regular Instructional Services $ 3,623, Special Populations Services 995, Alternative Programs and Services 125, School Leadership Services 527, Co-Curricular Services 767, School-Based Support Services 2,166, Total Instructional Services $ 8,205, System-Wide Support Services: Support and Development Services $ 175, Special Population Support and Development Services 263, Alternative Programs and Services Support and Development Services 57, Technology Support Services 731, Operational Support Services 7,003, Financial and Human Resource Services 730, Accountability Services 143, System-Wide Pupil Support Services 101, Policy, Leadership and Public Relations Services 364, Total System-Wide Support Services $ 9,570, Ancillary Services: Community Services $ Nutrition Services 70, Total Ancillary Services $ 71, Non-Programmed Charges: Payments to Other Governmental Units $ 350, Contingency 3,315, Total Non-Programmed Charges $ 3,665, Total Local Current Expense Fund Appropriation $ 21,512, Section 4 - The following revenues are estimated to be available to the Local Current Expense Fund for the fiscal year beginning July 1, 2010 and ending June 30, 2011: Local Sources $ 21,512, Total Local Current Expense Fund Revenues $ 21,512, Section 5 - The following amounts are hereby appropriated for the operation of the Henderson County Public Schools in the Other Restricted Funds for the fiscal year beginning July 1, 2010 and ending June 30, 2011:

4 BUDGET RESOLUTION for the Fiscal Year Ending June 30, 2011 A Page 3 of 26 Instructional Services: Regular Instructional Services $ 361, Special Populations Services 11, Alternative Programs and Services 1,158, School Leadership Services 44, Co-Curricular Services 17, School-Based Support Services 73, Total Instructional Services $ 1,666, System-Wide Support Services: Support and Development Services $ 1, Alternative Programs and Services Support and Development Services Technology Support Services 236, Operational Support Services 60, Financial and Human Resource Services 58, Accountability Services 38, Policy, Leadership and Public Relations Services 133, Total System-Wide Support Services $ 529, Ancillary Services: Community Services $ 44, Total Ancillary Services $ 44, Non-Programmed Charges: Contingency $ 168, Total Non-Programmed Charges $ 168, Total Other Restricted Funds Appropriation $ 2,408, Section 6 - The following revenues are estimated to be available to The Other Restricted Funds for the fiscal year beginning July 1, 2010 and ending June 30, 2011: Federal Sources $ 507, State Sources 889, Local Sources 1,011, Total Other Restricted Funds Revenues $ 2,408, Section 7 - The following amounts are hereby appropriated for the operation of the Henderson County Public Schools in the Federal Grants Fund for the fiscal year beginning July 1, 2010 and ending June 30, 2011:

5 BUDGET RESOLUTION for the Fiscal Year Ending June 30, 2011 A Page 4 of 26 Instructional Services: Regular Instructional Services $ 4,925, Special Populations Services 3,039, Alternative Programs and Services 3,676, School Leadership Services 2,002, School-Based Support Services 593, Total Instructional Services $ 14,237, System-Wide Support Services: Support and Development Services $ 4, Special Population Support and Development Services 222, Alternative Programs and Services Support and Development Services 252, Technology Support Services 35, Operational Support Services 205, Financial and Human Resource Services 397, System-Wide Pupil Support Services 20, Total System-Wide Support Services $ 1,137, Non-Programmed Charges: Payments to Other Governmental Units $ 609, Unbudgeted Funds 1,069, Total Non-Programmed Charges $ 1,679, Total Federal Grants Appropriation $ 17,055, Section 8 - The following revenues are estimated to be available to the Federal Grants Fund for the fiscal year beginning July 1, 2010 and ending June 30, 2011: Federal Sources $ 17,055, Total Federal Grants Fund Revenues $ 17,055, Section 9 - The following amounts are hereby appropriated for the operation of the Henderson County Public Schools in the Enterprise Fund for the fiscal year beginning July 1, 2010 and ending June 30, 2011: Child Nutrition Program: Ancillary Services: Nutrition Services $ 6,426, Total Ancillary Services $ 6,426,545.00

6 BUDGET RESOLUTION for the Fiscal Year Ending June 30, 2011 A Page 5 of 26 Non-Programmed Charges: Payments to Other Governmental Units $ 536, Total Non-Programmed Charges $ 536, Total Child Nutrition Appropriation $ 6,963, Child Care Program: Ancillary Services: Community Services $ 1,166, Total Ancillary Services $ 1,166, Non-Programmed Charges: Payments to Other Governmental Units $ 23, Total Non-Programmed Charges $ 23, Total Child Care Program Appropriation $ 1,190, Total Enterprise Fund Appropriation $ 8,153, Section 10 - The following revenues are estimated to be available to the Enterprise Fund for the fiscal year beginning July 1, 2010 and ending June 30, 2011: Child Nutrition Program: Federal Sources $ 4,088, State Sources 97, Local Sources 2,777, Total Child Nutrition Revenues $ 6,963, Child Care Program: Federal Sources $ 21, State Sources Local Sources 1,167, Total Child Care Revenues $ 1,190, Total Enterprise Fund Revenues $ 8,153, Section 11 - The following amounts are hereby appropriated for the operation of Henderson County Public Schools in the Capital Outlay Fund for the fiscal year beginning July 1, 2010 and ending June 30, 2011: Category I Projects (Land and Buildings) $ 498, Category II Projects (Furniture and Equipment) 5, Category III Projects (Vehicles) 78, Total Capital Outlay Fund Appropriation $ 583,139.00

7 BUDGET RESOLUTION for the Fiscal Year Ending June 30, 2011 A Page 6 of 26 Section 12 - The following revenues are estimated to be available to the Capital Outlay Fund for the fiscal year beginning July 1, 2010 and ending June 30, 2011: State Sources $ 7, Local Sources 575, Total Capital Outlay Fund Revenues $ 583, Section 13 - All appropriations shall be paid first from revenues restricted as to use, and second from general unrestricted revenues. Section 14 - The Superintendent is hereby authorized to transfer appropriations within a fund under the following conditions: A. Amounts may be transferred between sub-functions and objects of expenditure within a function without limitations and without a report to the Board of Education being required. B. He may transfer amounts not to exceed $5,000 between functions of the same fund with a report on such transactions being required at the next meeting of this Board of Education. Section 15 - All locally-funded employees will receive salary increases consistent with their classification equal to those increases as implemented for State Public School Fund employees. Section 16 - Copies of the Budget Resolution shall be immediately furnished to the Superintendent and Chief Finance Officer for direction in carrying out their duties. Adopted this 8th day of November, 2010 Ervin W. Bazzle, Chairman David L. Jones, Secretary

8 INITIAL BUDGET-ALL FUNDS Page 7 of 26 B Final Budget* Initial Budget Initial % of % of % of Ref. Budget Total Amount Total Amount Total C Local Current Expense Fund $ 21,512, % $ 21,077, % $ 23,664, % D Other Restricted Funds 2,408, % 2,703, % % E State Public School Fund 68,297, % 68,005, % 66,128, % F Federal Grants Fund 17,055, % 16,338, % 15,833, % G Enterprise Fund: Child Nutrition $6,963,200 Child Care 1,190,250 8,153, % 8,044, % 8,004, % H Capital Outlay Fund 583, % 1,100, % 578, % Initial Budget - All Funds $118,010, % $117,270, % $114,209, % * Final Budget reflects Budget Amendments and Transfers made during the year Initial Budget- Expenditures by Object Salaries and Benefits Purchased Services 11.85% 9.05% 0.56% 0.30% 78.24% Supplies and Materials Equipment and Vehicles Other 15.86% 0.49% 6.63% 5.15% Initial Budget- Expenditures by Purpose Instructional Services System-Wide Support Services Capital Outlay Ancillary Services 71.87% Non-Programmed Charges

9 LOCAL CURRENT EXPENSE FUND/OTHER RESTRICTED FUNDS ANTICIPATED REVENUES C Page 8 of Initial Budget Local Other Final Budget- Initial Budget- Current Restricted Total Local and Local Current Expense Fund Funds Total Other Funds* Expense Fund ** $ (1) County Appropriation $ 20,698,218 $ - $ 20,698,218 $ 20,392, ,392,939 Other Sources of Revenue: Sales Tax Refund - 90,755 90,755 82, ,750 (2) Fines and Forfeitures 475, , , ,325 (3) Indirect Cost: Child Nutrition - 150, , , ,000 (2) Federal Programs - 609, , , ,605 (4) Child Care - 23,900 23,900 21, ,000 (2) Investment Income 20,225 20,225 22, ,785 (2) ABC Revenues 55,570-55,570 62, ,000 (2) Grants: Mountain Area Workforce Investment Act: Youth Recovery Program - 80,450 80,450 70, ,290 (5) Dropout Prevention Program - 65,185 65, (6) ARRA Summer Youth Program , ,246 (7) More-at-Four - 965, , , ,200 (8) Medicaid Administrative Outreach , (9) Medicaid Fees for Service , (9) CSTOP - 25,000 25,000 25, ,000 (10) Teen Tobacco Use Prevention and Cessation - 73,127 73,127 69, ,313 (11) Fresh Fruits & Vegetables Grant , (12) CTE Regional Coordinators' Meeting Funds , (13) JROTC - 170, , , ,255 (14) Tuition and Fees - 24,110 24,110 31, ,700 (15) Reassignment/Transcript Fees - 2,750 2,750 3, ,250 (2) Out-of-District Tuition - 1,550 1,550 5, ,100 (2) Sale of Fixed Assets (Roughgarden Live Project) , ,506 (16) Rental of School Property - 26,000 26,000 25, ,650 (2) Contributions, Donations and Reimbursements - 70,325 70,325 93, ,335 (17) Fund Balance Appropriated 284,173 9, , , ,969 (18) Total Revenues $ 21,512,961 $ 2,408,103 $ 23,921,064 $ 23,781,187 $ 23,664,218 * Final Budget reflects Budget Amendments and Transfers made during the year. NOTE: During fiscal year , a new fund called "Other Restricted Funds", was created to account for restricted grants, contributions, donations and reimbursements. Since the new fund was not in existence when the Initial Budget was approved, both the Local Current Expense Fund and Other Restricted Funds are being presented together in Schedule C and Schedule D to facilitate comparison to the Initial Budget. ** See explanation of significant changes on pages 9-11.

10 LOCAL CURRENT EXPENSE FUND/OTHER RESTRICTED FUNDS ANTICIPATED REVENUES (CONTINUED) Page 9 of 26 C Explanation of significant changes: (1) The County Appropriation was increased by 1.5% in to cover the following state-mandated employer matching benefit increases: $68,039 for increase in employer matching hospitalization from $4,527 in to $4,929 in ; $237,240 for increase in the employer matching retirement rate to 10.51% from 8.75% in (2) amount is based on actual. (3) amount is based on actual ($591,256), adjusted downward (collections for the first quarter of fiscal year are down by 18.8% compared to the same time period in ). (4) The following federal programs allow the charging of indirect cost at the restricted rate of 4.775% for the fiscal year: Vocational Education-Program Improvement 017 $ 4,815 $ 4,165 Vocational Education-Tech Prep 023-1,360 Education for Homeless Children IDEA VI-B Building Capacity and Improvement 044 2, Safe and Drug-Free Schools IDEA Title VI-B Pre-School Handicapped 049 3,238 1,600 IASA Title I-LEA Basic Program ,349 64,205 IASA Title I-Migrant Regular ,614 14,680 IDEA Title VI-B Handicapped ,028 56,215 IDEA Early Intervening Services ,175 9,955 IDEA Title VI-B State Improvement Improving Teacher Quality ,371 14,320 Language Acquisition 104 3,248 3,260 Title I School Improvement 105 1,362 Educational Technology ARRA Education Stabilization ,058 84,525 * ARRA-Title I ,440 19,950 * ARRA-IDEA VI-B ,438 34,840 * ARRA-IDEA Pre-School 145 3,188 1,370 * ARRA-Education Technology - Formula ,080 * ARRA-McKinney Vento 148 1, * $ 609,758 $ 314,605 * Represents two-year grant funded by the federal American Recovery and Reinvestment Act. Grant (and resulting indirect cost revenue) will terminate at the end of the federal fiscal year (September 30, 2011).

11 LOCAL CURRENT EXPENSE FUND/OTHER RESTRICTED FUNDS ANTICIPATED REVENUES (CONTINUED) C Page 10 of 26 Explanation of significant changes (continued from page 9): (5) Grant is awarded through the Mountain Area Workforce Development Board and provides funding for a Youth Recovery Coordinator at Balfour Education Center. The goal of the program is to encourage out-of-school youth to return to school and complete their education. The program expects to serve 29 out-of-school youth (ages 16-18). (6) Represents a new grant awarded through the Mountain Area Workforce Development Board and provides funding for a Dropout Prevention Coordinator at Balfour Education Center. The purpose of the program is to provide services that will help youth at risk of dropping out to remain in school and complete graduation requirements and gain meaningful employment. The program expects to serve 18 in-school youth (ages 14-18) and 6 out-of-school youth (ages 16-18). (7) Grant was for the period of May 1, 2009 through September 30, (8) Represents anticipated i reimbursement for 195 students at the average monthly rate of $495 per student. (9) Represents reimbursement for documented services performed for Medicaid-eligible students, plus associated administrative costs. Revenues are budgeted through amendments when received throughout the fiscal year. (10) Grant is funded through the state's Department of Juvenile Justice and Delinquency Prevention's Juvenile Crime Prevention Council and pays for a portion of the salary of the CSTOP Specialist at Balfour Education Center. (11) Represents the second year of a three-year grant for Teen Tobacco Use Prevention and Cessation. The grant was awarded by the North Carolina Health and Wellness Trust Fund Commission and provides funding for a Tobacco Prevention Coordinator position to prevent youth from starting tobacco use and to help those who are using with cessation. (12) Represents Fresh Fruits & Vegetables grant for Dana Elementary which was included in the Child Nutrition Fund Initial Budget, but was moved during the year to Other Restricted Funds. Based on advice from DPI, the budget for has been moved back to the Child Nutrition Fund, per page 22 of Schedule G, along with a similar grant for Upward Elementary. (13) Henderson County is no longer the fiscal agent for the CTE Regional Coordinators' meetings. The balance remaining from , $655, has been carried forward per footnote (18) on page 11. (14) Reimbursements are received monthly from the Army for 50% of the MIP (Minimum Instructor Pay) for two JROTC teachers at West Henderson; and from the Air Force for two teachers at East Henderson and two at North Henderson. The MIP is adjusted by the military annually in January of each year. The decrease is a result of a change in personnel.

12 C HENDERSON COUNTY PUBLIC SCHOOLS Page 11 of 26 LOCAL CURRENT EXPENSE FUND/OTHER RESTRICTED FUNDS ANTICIPATED REVENUES (CONTINUED) Explanation of significant changes (continued from page 10): (15) budget included $50,000 for fees collected from students for Advanced Placement exams. The offsetting $50,000 expenditure was also included in the Initial Budget. In practice, however, it was determined that the fees collected should remain at the individual school level, where the ordering of the exams takes place. (16) amount represented net proceeds from the sale of Live Project houses at East and West High School. No sales are anticipated for (17) Represents contributions to be received from various donors and foundations for the following programs: Bullington Farm (Education Foundation; North Carolina Cooperative Extension) $ 55,305 Robotics Program at Early College 10,000 Outdoor Education (remaining balance at the Education Foundation) 1,780 Donations for Balfour Education Center 1,740 Duke Power donation for Science Fair 1,500 Total $ 70,325 (18) The following uses of fund balance are projected for : 6/30/2010 grant/program balances carried over: Maintenance $ 250,000 Staff Development 16,500 Instructional Supplies 7,170 Band 5,485 Odyssey of the Mind 4,410 Duke Power Grant 4,305 Balfour Education Center Donations 2,289 Cultural Arts/Folk Arts 1,563 Robotics 1,514 CTE Regional Directors' Conference 655 Total $ 293,891

13 LOCAL CURRENT EXPENSE FUND/OTHER RESTRICTED FUNDS BUDGETED EXPENDITURES BY PROGRAM D Page 12 of Initial Budget Program Local Other Final Budget- Initial Budget- Report Current Restricted Total Local and Local Current Program Code Expense Fund Funds Total Other Funds* Expense Fund ** Classroom Teachers 001 $ 2,172, $ 19, $ 2,191, $ 2,414, $ 4,488, (1) Central Office Administration , , , , , (2) Non-Instructional Support Personnel , , , ,427, (3) School Building Administration , , , ,527, , (4) Instructional Support 007 2,253, ,253, ,471, , (5) Non-Contributory Employee Benefits , , , , , (6) NBPTS Educational Leave 011 6, , , , , (6) Driver Training (No Pass/No Drive) , (7) Vocational Education , , , , (6) School Technology Fund CTE Regional Coordinators' Conference 017 2, , , (8) Mentor Positions , , (9) Disadvantaged Students' Supp. Funding , , , , (6) Teacher Assistants , , ,097, , (10) Staff Development , , , , (6) Willie M , , , , (11) Children With Special Needs , , , , (11) Academically/Intellectually Gifted , , , , (6) Child Nutrition , , , , (6) Charter Schools , , , , (12) Limited English Proficiency , , , , (11) High School Learn and Earn (Early College) 055 5, , , , (11) Classroom Materials/Instructional Supplies , , , , , (13) Developmental Day 063 2, , (11) Alternative Programs and Schools , , , , (6) At-Risk Student Services , , , , (11) Special Position Allotment , , (6) JROTC , , , , , (14) Workforce Investment Act Grant 302 1, , , , , (15) ARRA Summer Youth Program , , (16) Medicaid Administrative Outreach , , , , (17) Medicaid Direct Service Reimbursements , , (17) More-at-Four/Smart Start Grant , , ,002, ,015, (18) Dropout Prevention Grant (West High) , , (16) Child Obesity Pilot Program , , (16) CSTOP , , , , , (6) Teen Tobacco Use Prevention Grant 443 1, , , , , (19) Teaching Fellows Judges (16) Teacher of the Year , , (16) Robotics , , , , (20) Knights of Columbus Grant , , (16) Career/College Advisement Centers , , , , (6) Bullington Farm 516 3, , , , , (21) E-Rate Program , , , , (6) * Final Budget reflects Budget Amendments and Transfers made during the year. NOTE: During fiscal year , a new fund called "Other Restricted Funds", was created to account for restricted grants, contributions, donations and reimbursements. Since the new fund was not in existence when the Initial Budget was approved, both the Local Current Expense Fund and Other Restricted Funds are being presented together in Schedule C and Schedule D to facilitate comparison to the Initial i Budget. ** See Note and explanation of significant changes on pages

14 LOCAL CURRENT EXPENSE FUND/OTHER RESTRICTED FUNDS BUDGETED EXPENDITURES BY PROGRAM (CONTINUED) D Page 13 of Initial Budget Program Local Other Final Budget- Initial Budget- Report Current Restricted Total Local and Local Current Program Code Expense Fund Funds Total Other Funds* Expense Fund ** Creative Teaching Grant-PARI Starlab 522 $ - $ - $ - $ 4, $ 4, (16) Duke Power Grant 523-5, , , , (22) Community Schools , , , , (6) Transportation of Pupils , , , , (23) Fresh Fruits & Vegetables Grant , (24) Intersession Programs , , , , (25) General Operations 801 2,193, , ,501, ,371, ,350, (11) Maintenance/Custodial 802 6,314, , ,358, ,019, ,059, (26) Cultural/Folk Arts , , , , (6) Literacy Partners Program 804 7, , , , (6) Outdoor Education , , , , (6) Roughgarden , , (27) Band , , , , (11) Strings 811 2, , , , Athletics , , , , (11) Chorus 813 1, , , , Theatre 814 1, , , Dance 815 1, , , , Balfour Education Center , , , , , (11) Contingency 000 3,315, , ,483, (28) Total Expenditures $ 21,512, $ 2,408, $ 23,921, $ 23,781, $ 23,664, * Final Budget reflects Budget Amendments and Transfers made during the year. Note: Program totals above and on page 12 reflect an increase in the employer matching retirement rate to 10.51% (from 8.75% in ); and an increase in the employer matching hospitalization rate from $4,527 per employee per year in to $4,929 for For the second year in a row, there were no salary increases for state personnel (all HCPS employees are considered to be state personnel, regardless of funding source). ** Explanation of significant changes: (1) Reduction reflects the transfer of the majority of locally-funded teaching positions to state in an effort to preserve local funds for This is possible as a result of more flexibility allowed with ABC transfers for the two-year period ending June 30, In addition, 18 classroom teachers which would have been funded locally are being paid through the Education Jobs Fund grant (PRC 155 per page 19 of Schedule F). (2) Reduction reflects local portion of savings from Central Office reorganization/reduction. (3) Reduction from Initial Budget reflects state funding of custodians, office support positions and substitute salaries. See also footnote (3) per page 17 of Schedule E. (4) In , as a result of ABC Transfer flexibility, 29 Principal and Assistant Principal positions (whose salaries were lower than the statewide average) were funded locally. These transfers were made after the Initial Budget was approved. In , as a result of the federal Education Jobs Fund (PRC 155 per page 19 of Schedule F), 28 of these positions are being funded by federal funds and the remaining position is state-funded. (5) In , as a result of ABC Transfer flexibility, 38 Instructional Support positions whose salaries were lower than the statewide average were funded locally. These transfers were made after the Initial Budget was approved. In , only 31 of these positions are being paid locally, with the remainder funded by the state. (6) budget is based on actual, adjusted for the increase in employer-matching benefits per the Note above.

15 Page 14 of 26 HENDERSON COUNTY PUBLIC SCHOOLS LOCAL CURRENT EXPENSE FUND/OTHER RESTRICTED FUNDS BUDGETED EXPENDITURES BY PROGRAM (CONTINUED) D Explanation of significant changes (continued from page 13): (7) Driver training is being contracted through Mountain Professionals, Inc., whose services are paid entirely from the state Driver Training allotment (PRC 012 per page 16 of Schedule E). (8) In addition to the fund balance carried over from ($655 per footnote (18) on page 11 of Schedule C), budget includes funding for work-study student. (9) Represents stipend paid to Beginning Teacher mentor. (10) Initial Budget represents local supplement plus matching employer benefits. For , 120 Teacher Assistant positions are being paid from federal ARRA funds (PRC 140 per page 19 of Schedule F). These funds expire at the end of the federal fiscal year (September 30, 2011). The remainder of the Teacher Assistant positions are being funded through state funds (see footnote (12 ) per page 18 of Schedule E). (11) Represents local supplement plus matching employer benefits on positions paid from other funds. Fluctuation from the previous year is due to attrition/terminations/replacements, which results in different pay levels (thereby affecting the amount of the supplement paid), plus the increase in employer matching benefits per the Note on page 13. (12) Increase over Initial Budget reflects the opening of a new charter school in Lake Lure with 30 Henderson County students in attendance. In , 2010, additional payments were made to charter schools for the three previous fiscal years as a result of the Sugar Creek Charter School lawsuit. (13) Initial Budget includes additional funding for Technology as a result of the elimination of Technology funding in the Capital Outlay budget per Schedule H, and the reduction in state School Technology funds per Schedule E. (14) Change from prior year is a result of change in program personnel and funding source. (15) Represents the combined expenditures for the Youth Recovery Program (per footnote (5) on page 10 of Schedule C) and the Dropout Prevention Program (per footnote (6) on page 10 of Schedule C). (16) Grant/program funding has expired. (17) Initial Budget represented carryover of prior years' fund balance Initial Budget represents expenditures to be funded from anticipated receipts, which will be budgeted through amendments when received during the fiscal year. (18) Expenditures are budgeted in the same amount as anticipated revenues (plus a small supplement ) per footnote (8) on page 10 of Schedule C. (19) Represents program expenditures funded by grant per footnote (11) on page 8 of Schedule C. (20) Initial Budget includes carryover per footnote (18) on page 11 of Schedule C. (21) Budget represents salary and benefits for horticulture instructor at Bullington Farm. 75% of this amount is reimbursed by the Education Foundation and North Carolina Cooperative Extension Service, per footnote (17) on page 11 of Schedule C. (22) Expenditures are budgeted in the same amount as anticipated revenues per footnotes (17) and (18) on page 11 of Schedule C. (23) Initial Budget does not reflect anticipated reimbursements from schools for activity bus use. Reimbursements are included in the Initial and Final Budgets.

16 D Page 15 of 26 HENDERSON COUNTY PUBLIC SCHOOLS LOCAL CURRENT EXPENSE FUND/OTHER RESTRICTED FUNDS BUDGETED EXPENDITURES BY PROGRAM (CONTINUED) Explanation of significant changes (continued from page 13): (24) See footnote (12) per page 10 of Schedule C. (25) Represents anticipated expenditures for intersession programs at Bruce Drysdale and Hendersonville Elementary. These expenditures are funded by offsetting revenues included in Tuition and Fees on page 8 of Schedule C. (26) Increase in expenditures for reflects the carryover of fund balance in the amount of $250,000 per footnote (18) on page 11 of Schedule C, in addition to the increase in employer matching benefits per the Note on page 13 of Schedule D. (27) See footnote (16) per page 10 of Schedule C. (28) As a result of increased ABC Transfer flexibility, along with the receipt of the federal Education Jobs Fund in the amount of $2,744,953, expenditures normally paid by local funds have been temporarily redirected to state or federal funds, thereby allowing savings estimated to be $3,315,168 in the Local Current Expense Fund and $168, in Other Restricted Funds. These savings will be absorbed into Fund Balance in preparation for the elimination of the federal American Recovery and Reinvestment Act (ARRA) Stabilization Funds per federal PRC 140 which for two years have been used to "backfill" the state budget shortfall. In when these funds are no longer available, if the state's revenues have not recovered sufficiently to restore this funding, HCPS will appropriate Fund Balance in order to preserve positions. ii

17 STATE PUBLIC SCHOOL FUND BUDGET BY PROGRAM Page 16 of 26 Program Report Initial Final Initial Program Code Budget Budget* Budget ** Classroom Teachers 001 $ 27,238,830 $ 34,033,612 $ 34,215,426 (1) Central Office Administration , , ,485 (2) Non-Instructional Support Personnel 003 6,084,639 6,218,033 3,880,847 (3) School Building Administration , ,450 2,888,885 (4) Instructional Support 007 2,278,536 2,182,065 3,997,153 (5) Non-Contributory Employee Benefits 009 1,500,926 1,542,166 1,418,466 (6) Waivers to Certified Personnel 010 9,228,777 2,368,605 - (7) NBPTS Educational Leave ,705 11,705 6,525 (6) Driver Training , , ,213 (8) Vocational Education-Months of Employment 013 3,352,398 3,276,887 3,310,538 (9) Vocational Education-Program Support , , ,614 (9) School Technology Fund ,209 (a) 663,666 (a) 657,141 (10) Mentor Pay ,859 62,164 62,164 (6) Disadvantaged Students' Supplemental Funding , , ,900 (11) Teacher Assistants 027 1,291, , ,470 (12) Behavioral Support (Willie M.) ,906 86,646 86,646 (6) Children with Special Needs 032 5,988, ,727,008 5,709,281 (13) Academically /Intellectually Gifted , , ,975 (14) Limited English Proficiency 054 1,061,589 1,075,771 1,075,771 (15) High School Learn and Earn , , ,200 (16) Transportation of Pupils 056 2,503,190 2,394,595 1,847,795 (17) Classroom Mtls/Instructional Supplies/Equipment , , ,243 (18) Special Program Funds-EC (Developmental Day) , , ,554 (19) Assistant Principal Interns ,277 16,277 16,277 (6) Alternative Programs and Schools ,058 (a) 466,719 (a) 466,719 (20) At-Risk Student Services 069 1,928,037 (a) 1,613,231 (a) 1,613,231 (20) School Connectivity , ,197 78,053 (21) Special Position Allotment ,810 78,295 78,295 (6) Textbooks , ,693 (22) Total State Public School Fund $ 68,297,088 $ 68,005,044 $ 66,128,560 * Final Budget reflects Budget Amendments and Transfers made during the year. ** See explanation of significant changes on pages Note : The allotments above are based on DPI's allotted ADM (Average Daily Membership) of 13,566. The "allotted ADM" is defined as the higher of either: 1.) the best ADM for the first two months of the previous school year, or 2.) DPI's projected ADM for the current school year. For , the higher of the two is DPI's projection of 13,566. This represents a increase of 199 students (1.49%) from the allotted ADM of 13,367, which was also DPI's projected ADM. If the higher of the actual first or second month ADM is at least 2% or 100 students lower than DPI's projection used for allotments, the current year's allotments will be reduced pro-rata. The first month, or 20-day ADM for HCPS was 13,378, or 188 students less than DPI's projected ADM. It is estimated that this will result in a reduction of 5 classroom teacher positions, plus an additional reduction of $99,912 in dollar allotments. The allotments above also include various additions and adjustments made by DPI through Budget Allotment Revision # 14 dated 10/21/2010, and include the employer matching benefit increases per Note on page 13 of Schedule D. E

18 STATE PUBLIC SCHOOL FUND BUDGET BY PROGRAM (CONTINUED) Page 17 of 26 E (a) The initial program budgets on page 1 reflect the following prior year carryovers: $ % PRC Change Change School Technology Fund 015 $ 3,982 $ 371,849 $ (367,867) % Alternative/At-Risk Student Svcs. 068/ ,149 52, , % * Totals $ 168,131 $ 424,229 $ (256,098) % * carryover was reduced by 50% as a part of the final approved state budget. Explanation of other significant changes: (1) budget reflects the return of 27 teaching positions as a part of the $2,053,184 required state reversion. The initial allotment reflects the transfer of positions to PRC 003 ($5,879,099) and PRC 010 ($4,046,010) as a result of the increased flexibility of ABC transfers to preserve local funds. (2) State Central Office Administration allotment was decreased as a part of the final approved state budget. (3) Initial Budget of $6,084,639, consists of the initial allotment in PRC 003 of $198,165, plus the amount transferred from PRC 001 per (1) above ($5,879,099)., In addition, $7,375 in substitute reimbursements from DPI have been credited to this allotment through Budget Allotment Revision #14. (4) The Initial Budget reflects the return of 325 School Building Administration months of employment (MOE) as part of the $2,801,829 required state reversion. The Final Budget reflects ABC flexibility transfers from PRC 005 to PRC 010 (348 MOE were converted into $2,368,605, which was transferred into PRC 010). (5) The Initial Budget reflects the return of nine Instructional Support positions as part of the $2,801,829 required state reversion. In addition, Instructional Support positions were converted into $1,591,467, which was transferred to PRC 010 as a result of the increased flexibility of ABC transfers to preserve local funds. (6) budget is based on actual, adjusted for the increase in employer matching benefits per Note on page 13 of Schedule D. (7) Initial Budget consists of transfers from other allotments allowed as a result of the increased ABC transfer flexibility to preserve local funds as follows: Classroom Teachers in PRC 001 were converted into $4,046,010 per (1) above; Instructional Support positions in PRC 007 were converted into $1,591,467 per (5) above; $3,591,300 was transferred from PRC 027 to PRC 010 per footnote (12) on page 18 of Schedule E. (8) Reduction in Initial Budget is a result of both an 8-student decrease in 9th-grade ADM, on which allotment is calculated, plus a reduction in the allotment formula of $2.05 per ADM. (9) increase is a result of a 128-student increase in grades 8-12 ADM, on which the allotment is based. In addition, both the Initial Budget and Final Budget reflect ABC transfers of 14 MOE ($80,349) and MOE ($78,956), respectively, to Vocational Program Support (PRC 014). (10) Both the Final Budget and Initial Budget reflect the carryover of $371,849 per (a) above, plus fines and forfeitures. The allotment formula has actually increased by $.42 per ADM, and includes the $3,982 carryover per (a) above, plus fines and forfeitures credited to-date of $174,034. (11) budget is based on approved grant application. The Disadvantaged Students' Supplemental Grant supports ( ) g pp g pp g pp pp targeted reading instruction at Balfour, LEP services at East Henderson and Balfour, and partially funds instructional coaches, benchmark assessments, and laptops for the Early College.

19 STATE PUBLIC SCHOOL FUND BUDGET BY PROGRAM (CONTINUED) E Page 18 of 26 Explanation of other significant changes (continued from page 2): (12) The initial PRC 027 allotment was $4,901,870, which reflected an increase in the funding formula over the previous year of $29.35 per K-3 ADM, to which the formula is applied. The budgets reflect the return of $585,059 as a part of the required $2,053,184 state reversion. In , $3,753, in federal Education Stabilization funds (per footnote (15) on page 21 of Schedule F) are funding salaries and benefits for 120 Teacher Assistant positions. As a result, $3,591,300 has been transferred from PRC 027 to PRC 010 to fund instructional positions as a result of the increased flexibility of ABC transfers to preserve local funds. (13) allotment formula has increased, as well as the April 1 headcount on which the formula is based. The final allotment reflects additional $17,727 as a result of 60-day headcount transfer from charter schools. (14) allotment formula has been increased by $19.15 per child, in addition to the increase in employermatching benefits per Note on page 13 of Schedule D. (15) The Initial Budget reflects a reduction in both the per-pupil funding per LEP student (from $ in to $ in ) as well as the amount funded on the concentration of LEP students (from $3, in to $3, in ). (16) Represents the second year of a five-year NC New Schools Project grant for the Henderson County Early College at Blue Ridge Community College. The Final Budget includes additional allotments of $39,354 for online textbook purchases. The grant provides funding for a Workforce Development instructor; Guidance Counselor; Office Support/NCWISE position; laptops for students; Early College "Coach" positions; textbooks and instructional supplies and materials. Months of employment (MOE) for the Principal are included in PRC 005. (17) The Initial Budget represented approximately 80% of the final allotment. The Final Budget reflected 100% funding, as well as $76,081 in additional fuel allotments received during the year. The Initial Budget represents 100% of the final allotment, which is based on ridership numbers and efficiency ratings. In , as in the past few years, the efficiency rating for HCPS has been 100%. (18) Increase in the Initial Budget is a result of increase in both the allotment formula (from $59.82 to $61.16 per ADM), and ADM (see Note on page 16) Initial Budget also reflects reduction of $11,281 as part of the $2,801,829 required state reversion. In addition, as part of the ABC Transfer flexibility, $252,184 of the Textbook carryover as of 6/30/2010 was transferred into this allotment per (24) below. (19) Allotment is based on individual LEA application and is dependent upon the number of Henderson County students residing in a group or foster home. (20) Allotment is for stipend for participant in the Principal Fellows Program, which provides for two-year scholarships. (21) budget reflects higher carryover per (a) on page 17. In addition, allotment formula has increased, as well as the ADM on which the formula is partially based. Formula also factors in the number of poor children per the federal Title I Low Income poverty data. (22) Initial Budget represented carryover of allotment balance Final Budget included this carryover, plus allotment of $76,144, all of which was spent in Initial Budget consists entirely of the current allotment. Allotment is intended for the enhancement of technology infrastructure for LEAs that receive E-rate funding and have an approved Technology Plan in place. (23) Allotment is for Teacher-On-Loan to the North Carolina Center for Recruitment and Retention at NCDPI and reflects the state-approved salary and corresponding matching employer benefits. Teacher works with WRESA to provide various services to the Western Region. (24) The Textbook allotment has been reduced from $40.75 per ADM in to $1.69 per ADM. The entire allotment, $22,845, was returned as part of the $2,801,829 required state reversion. In addition, per (18) above, $252,184 of the Textbook carryover was transferred to PRC 061 (Classroom Supplies and Materials) to restore the allotment and to facilitate technology purchases, which have been eliminated from the Capital Outlay budget (see Schedule H per page 26).

20 FEDERAL GRANTS FUND BUDGET BY PROGRAM F Page 19 of 26 Program Report Initial Final Initial Program Code Budget Budget* Budget ** Career and Technical Education-Prog. Improvement 017 $ 176, $ 179, $ 174, (1) Career and Technical Education-Tech Prep , , (2) Education for Homeless Children , , , (3) IDEA VI-B Capacity Building and Improvement , , , (4) Safe and Drug-Free Schools , , , (3) IDEA Title VI-B Pre-School Handicapped , , , (5) IASA Title I-LEA Basic Program 050 3,882, ,105, ,118, (6) IASA Title I-Migrant Regular , , , (7) Abstinence Education 057-7, , (2) IDEA Title VI-B Handicapped 060 2,212, ,358, ,350, (8) IDEA-Early Intervening Services (EIS) , , , (8) IDEA Title VI-B State Improvement , , (9) Improving Teacher Quality , , , (10) Language Acquisition State Grant , , , (11) Title I School Improvement , , , (12) Educational Technology (Formula) , , , (13) Children With Special Needs-Risk Pool , (14) ARRA Education Stabilization 140 3,753, ,534, ,534, (15) ARRA-Title I , ,668, ,668, (16) ARRA-Title 1 School Improvement , (12) ARRA-IDEA VI-B , ,852, ,843, (17) ARRA-IDEA Pre-School , , , (17) ARRA-Education Technology - Formula 146 9, , , (13) ARRA-McKinney Vento , , , (18) ARRA-Child Nutrition Equipment , , (19) Education Jobs Fund 155 2,744, (20) Total Federal Grants Fund $ 17,055, $ 16,338, $ 15,833, Note: The federal grants above are awarded as a result of written grant applications submitted to and approved by DPI based on the federal government's fiscal year (October 1 - September 30). Most of the initial budgets above are based on planning allotments, since the initial federal allotments had not yet been received by the time the Initial Budget was prepared. Added to the planning allotments are the budget carryovers remaining from the previous years per * on page 20. * Final Budget reflects Budget Amendments and Transfers made during the year. ** See explanation of significant changes on pages

21 Explanation of significant changes: HENDERSON COUNTY PUBLIC SCHOOLS FEDERAL GRANTS FUND BUDGET BY PROGRAM (CONTINUED) * Included in the initial budgets on page 19 are the below carryovers from the previous year: Page 20 of 26 F $ Change % Change PRC $ 21, $ 11, $ 10, % PRC (436.39) (100.00%) PRC , , , % PRC , (7,027.84) (98.78%) PRC , , , % PRC , , (63,643.99) (25.88%) PRC , (7,183.46) (100.00%) PRC , , , % PRC , , , % PRC , (7,632.23) (95.27%) PRC , (5,079.78) (96.86%) PRC , , PRC , , PRC , , PRC , , PRC , , PRC 146-9, , PRC , , PRC , (28,522.41) (100.00%) Total $ 3,661, $ 1,024, $ 2,637, % (1) budget represents DPI planning allotment. 70% of final allotment will be based on the population of children in poverty, ages The remaining 30% will be based on the total age 5-17 population. (2) Grant funding has expired. (3) Initial Budget consists entirely of carryover per * above. (4) budget represents DPI initial allotment, which is based on the December 2009 IDEA Title VI-B headcount, adjusted for a minimum allocation of $1,000. Grant funds are used for staff development. (5) budget represents DPI final allotment plus carryover per * above. Final allotment consists of a base amount equal to a proportional share of 75% of the IDEA Title VI-B Preschool Grant as calculated using the December 1996 head count. 85% of the remaining funds are distributed based on ADM, including private schools, with 15% distributed based on the December 2009 free lunch count. (6) budget represents DPI planning allotment plus carryover per * above. Allotment formula is based on the number of children in poverty, the number of neglected children and the number of children in foster homes. (7) Initial Budget represents DPI initial allotment plus carryover per * above.

22 FEDERAL GRANTS FUND BUDGET BY PROGRAM (CONTINUED) F Page 21 of 26 Explanation of other significant changes (continued from page 20): (8) For and , some LEAs were required to reserve 15% of the total of PRCs 049, 060, 144 and 145 allotments for Coordinated Early Intervention Services (EIS). That amount has been reduced from PRC 060 and allocated to PRC 070. (9) Anticipated allotment for is $10,000. (10) Initial Budget represents planning allotment, plus carryover per * on page 20. Funds are used to help fund the instructional coaches' salaries and benefits, in addition to providing system-wide staff development activities. (11) Initial Budget represents DPI initial allotment, plus carryover per * on page 20. Funds are awarded based on grant application and are allocated on the basis on an annual headcount of LEP students, including immigrant students and youth. (12) Initial Budget represents DPI planning allotment plus carryover per * on page 20. Funds will be used for Sugarloaf Elementary, which is in Title I School Improvement status. (13) Initial i Budget consists entirely of carryover per * on page 20. Funds are used for Intel training, i and purchase of flip video cameras for the classroom, in addition to other technology purchases to support the "21st Century Tools" portion of the Technology Plan (14) Anticipated allotment for is $26, (15) Per footnote (10) on page 14 of Schedule D and footnote (12) on page 18 of Schedule E, federal Education Stabilization funds made available under the American Recovery and Reinvestment Act (ARRA) are being used to pay salaries and benefits for 120 teacher assistant positions. (16) Initial Budget represents carryover of remaining funds available under ARRA funds were used to "backfill" cut in Title I funds, in addition to being allocated to the individual schools; hiring/retaining teachers to lower class size; and to fund 77% of Elementary Education Director's salary and benefits. (17) Initial Budget represents carryover of remaining funds available under ARRA. Funds are being used to hire four two-year "capacity-building" positions; to fund a Freshman Academy; and to purchase the Read 180/System 44 technology for enhanced reading. (18) Initial Budget represents carryover of remaining funds available under ARRA. Funds are being used for a portion of two positions to provide health services to homeless students (19) Initial Budget represents carryover of remaining funds available under ARRA. Funds were used in to purchase a gas stove for Apple Valley Middle and a food steamer for Bruce Drysdale Elementary. (20) Represents new one-year funding that is being used to pay salaries and benefits of 18 teaching positions and 28 Principal/Assistant Principal positions that would otherwise be funded with state or local funds.